The Minister for Racing, Rt Hon Winston Peters has confirmed his expectations of the Board of TAB NZ in a letter to Executive Chair, Dean McKenzie, recently.
In the letter, the Government outlines a requirement for TAB NZ to actively plan contingencies with the (racing) Codes in case there is a COVID-19 resurgence and requests that in December 2020 TAB NZ provide an update report on the state of its recovery and contingency planning.
The Government highlights the need for TAB NZ to build and maintain reserves with "an eye on the long-term objectives." The Minister notes TAB NZ may not be able to achieve an appropriate capital structure solely through retained earnings, especially in the short term. The Department of Internal Affairs (the Department) is undertaking work on this issue and the Minister expects TAB NZ to work closely with the Department's officials on this work stream.
The Letter of Expectations is a requirement of the Racing Industry Act 2020.
In the letter, the Minister thanks TAB NZ for its work in implementing the reforms, while also dealing with the sharp disruptions of COVID-19.
You can read the letter here.